Brazil’s Maeda Gets $20m 3-Year Loan

Grupo Maeda, a large Brazilian producer of cotton and soybeans, has signed a $20m 3-year loan at a margin of 300bp over Libor. Natixis and two hedge funds participated in this Standard Bank-led deal. The pre-export financing is backed by a pledge on Maeda’s soybean production and exports. Standard Bank also has a mortgage on Maeda property equalling $30m, which will decrease by a third each year. A European surveillance company will monitor Maeda’s soybean fields, making sure productivity levels meet contract terms, explains Regis Carvalho, vice president, LatAm structured finance at Standard Bank in New York. While the appreciating real still concerns exporters, soy prices, which hit an 11-week high in mid May, are improving, Carvalho says. The deal was oversubscribed, says Carvalho.